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How Intellectual Property Impacts Your Business

The European Observatory on Infringements of Intellectual Property Rights and the European Patent Office have carried out studies on the contribution of the main intellectual property rights (IPR) to the economy in the European Union. The purpose of these studies is to provide evidence about the value of intellectual property (IP). The impact of the IP has been assessed in two different studies.

The first study, released on September 2013, analyzed the main IPR intensive industries and their contribution to the economic performance and employment in the European Union. The results indicated that about 35 % of jobs in the European Union rely on IPR intensive industries, approximately 26 % of all jobs in the EU are provided directly by these industries and 9 % of all employment in the EU comes directly from them. Furthermore, the study revealed that about 39 % of total economic activity in the EU is generated by IPR intensive industries.

The latest study, released on June 2015, deals with an economic analysis of the main IPR and the firm’s performance in Europe. The new study has found out that European companies owning IPR achieve better economic performance than their competitors not owning IPR. The report shows descriptive statistics which exhibit the differences between companies owning and not owning IPR. The results of the analysis clearly demonstrate that the ownership of, specifically, patents, trademarks and designs, is strongly associated with improved economic performance at the level of the individual company.

Among other interesting patterns, the results show that the revenue per employee for owners of IPR is 28.6 % higher than for firms not owning IPR. This revenue is largest for companies owning designs at 31.4 %, followed by trademark owners and patent owners. This relationship between IPR and revenue per employee is even stronger for small and medium-sized enterprises (SMEs). For instance, when taking into consideration all firms subject to the study, the revenue for employee for firms owning IPR is 28 %. However, with respect to SMEs, this positive relationship reaches 32 %. Nevertheless, the statistics show that SMEs do not seem to be aware of how beneficial it is to own IPR since only 9.1 % of SMEs own designs, trademarks or patents.

Besides, IPR owners employ almost 6 times as many employees as companies not owning IPR and the salaries on companies owning IPR are almost 20 % higher than by firms that do not own IPR. The highest salary corresponds to patent owners at 40.6 %, followed by designs at 23.0 % and trademarks at 18.8 %.

In conclusion, these studies clearly present the positive impact of IP in the economy of the European Union. Now, with the results of these studies, the European Observatory on Infringements of Intellectual Property Rights and the European Patent Office aim to raise awareness among European citizens about the value of intellectual property.